Guidance Note on Bank Audits (2016 & 2017 Revised Editions) issued by AASB of ICAI
A. ICAI’s Guidance Note on Bank Audits 2017
The Guidance Note on Bank Audits (2017 Edition) issued by the AASB of ICAI is meant for detailed guidance of members on various important items of financial statements of banks, disclosure requirements, prudential norms of RBI, audit procedures, LFAR reporting, Ghosh and Jilani, special purpose reports and certificates, etc. The Guidance Note, inter alia, has been updated by ICAI for the impact of the Master Directions and other relevant circulars issued by RBI in 2016, guidance on demonetization at appropriate places, including the relevant pronouncements of the ICAI having bearing on bank audits. For the benefit of the members, the CD provided by the ICAI accompanying the Guidance Note contains Illustrative formats of engagement letter, auditor’s report, written representation letter, updated bank branch audit programme for the year 2016-17, the text of Master Directions issued by RBI in 2016, the text of Master Circulars and relevant General Circulars issued by RBI.
Complete text of the Guidance Note 2017 and the contents of accompanying CD can be downloaded from ICAI website at:
ICAI’s Guidance Note on Bank Audit 2017 (Download ZIP/ PDF)
|Guidance Note on Audit of Banks (2017 Edition)|
|Contents of accompanying CD|
It may be noted that the AASB of ICAI had earlier issued ‘Exposure Draft of Guidance Note on Bank Audits (2017 Edition)’ for comments latest by 27 Jan. 2017.
B. ICAI’s Guidance Note on Bank Audits 2016
The statutory audit of banks forms an integral and important part of control mechanism of the regulators, like RBI. It provides the stakeholders inlcuding the Regulators, a comfort with regard to credibility of the financial information that a bank generates at every year end. Given the nature, scope and volume of transactions undertaken by banks in India, coupled with their geographical spread and the various regulatory directions to which they are subject, audit of the financial statements of banks indeed becomes very challenging for their auditors
For quality bank audits, it is essential that the statutory auditors are well equipped in terms of knowledge of the banking sector and keep themselves abreast with the latest developments. The Guidance Note on Bank Audit 2016 edition is an important resource that provides detailed guidance to the bank auditors on the basic tenets of a bank audit, for the benefit of members.
This Guidance Note is updated every year by AASB of ICAI to reflect the important developments that have taken place in the banking sector, warranting attention of the statutory auditors, for example, RBI’s master circulars, general circulars of relevance, consequential updation of guidance for the auditors, where required, various pronouncements of ICAI, etc.
Complete text of the Guidance Note 2016 and the contents of accompanying CD can be downloaded from ICAI website at:
ICAI’s Guidance Note on Bank Audit 2016 (Download PDF)
|Guidance Note on Audit of Banks (2016 Edition)|
|Contents of accompanying CD|
In addition to the updations required on account of Master Circulars issued in 2015, this Guidance Note on Bank Audit 2016 Edition, inter alia, has been revised to include the new developments in the banking industry, such as, introduction of payment and small finance banks, how RBI exercises control over banking industry, some international developments of importance in the global banking industry, risk assessment and controls related to products regulated by SEBI and other regulators, Red Flag Accounts and Early Warning System, developments in respect of anti money laundering provisions, additional examples of IT and related frauds, verification of IT assets, guidance on capitalization of assets, FIMMDA Trade Reporting and Confirmation System, explanation of terms commonly used in case of investments by banks, audit procedures for loss on derivative transactions and margins held with exchanges, margins held under
The CD accompanying the Guidance Note contains Illustrative formats of the engagement letter, the auditor’s report and the written representation letter, updated bank branch audit programme for the year 2015-16, the text of Master Circulars issued by RBI on July 1, 2015 and the text of General and Other Circulars of RBI.